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BC 2015 and 2016 Personal Marginal
Income Tax Rates

The Federal tax rates for 2016 are as per Bill
C-2 tabled in December 2015. The BC tax brackets and personal amount were increased
for 2016 by an indexation factor of 1.009. The Federal tax brackets
and personal amount were increased for 2016 by an indexation factor of
1.013. The indexation
factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency
information.

The 2016 marginal tax rate for non-eligible dividends reflects the rate that is
in effect automatically due to the change in the gross-up rate for 2016.
The BC government would have to make legislative amendments in order for
this to change.

The BC $150,000 tax bracket was temporary for
2014 and 2015, according to the BC 2013 Budget.

Combined Federal
& British Columbia Tax Brackets and Tax Rates

2016
Taxable Income

2016
Marginal Tax Rates

2015
Taxable Income

2015
Marginal Tax Rates

Other
Income

Capital
Gains

Canadian
Dividends

Other
Income

Capital
Gains

Canadian
Dividends

Eligible

Non-Eligible

Eligible

Non-Eligible

first $38,210

20.06%

10.03%

-6.84%

8.27%

first $37,869

20.06%

10.03%

-6.84%

7.61%

over $38,210 up to
$45,282

22.70%

11.35%

-3.20%

11.36%

over $37,869 up to
$44,701

22.70%

11.35%

-3.20%

10.73%

over $45,282 up to $76,421

28.20%

14.10%

4.39%

17.79%

over $44,701 up to $75,740

29.70%

14.85%

6.46%

18.99%

over $76,421 up to
$87,741

31.00%

15.50%

8.25%

21.07%

over $75,740 up to $86,958

32.50%

16.25%

10.32%

22.29%

over $87,741 up to $90,563

32.79%

16.40%

10.72%

23.16%

over $86,958 up to $89,401

34.29%

17.15%

12.79%

24.40%

over $90,563 up to
$106,543

38.29%

19.15%

18.31%

29.60%

over $89,401 up to $105,592

38.29%

19.15%

18.31%

29.12%

over $106,543 up to $140,388

40.70%

20.35%

21.64%

32.42%

over $105,592 up to $138,586

40.70%

20.35%

21.64%

31.97%

over $140,388 up to
$200,000

43.70%

21.85%

25.78%

35.93%

over $138,586 up to
$151,050

43.70%

21.85%

25.78%

35.51%

over $200,000

47.70%

23.85%

31.30%

40.61%

over $151,050

45.80%

22.90%

28.68%

37.98%

Marginal tax rate for dividends is a % of actual
dividends received (not grossed-up amount).
Marginal tax rate for capital gains is a % of total capital gains
(not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is
17% for 2016, 18% for 2015.
For more information see BC dividend tax
credits.